Although a technical knowledge of these terms can be useful, it is not the point of this article. The focus is to illustrate that an Agent, a Surrogate, an Executor, and a Trustee are just the bosses of that respective Estate Planning document.

Pa Estate Law – 3 – Taxes

A major area of misinformation and misunderstandings in the estate law and estate planning areas are the taxes that are imposed upon one’s death in Pennsylvania.

Very simply, two death taxes can be imposed on the death of Pennsylvania residents – the:

Federal Estate Tax

Pennsylvania Inheritance Tax

However, and unlike the income tax, which is very descriptive in its title as it is imposed upon your income, the phrases Estate Tax and Inheritance Tax are misnomers in that may tend to belie the actual fact that these are taxes imposed by virtue of your death.

The Federal Estate Tax

Historically, the Federal Estate Tax has begun at a wealth threshold. If you possess less than the wealth threshold at your death, the federal estate tax will not be applicable.

If it is applicable, the tax is imposed on a percentage scale according to the amount of your wealth (i.e., potentially 47% of the value of your assets above the wealth threshold).

The current wealth threshold of the Federal Estate Tax has been changing drastically throughout the last decade. It has increased, disappeared, and reappeared in 2011.

In 2005, the threshold was $1,500,000.00; in 2006, 2007, and 2008, the threshold was $2,000,000.00; in 2009, the threshold was $3,500,000.00; and in 2010, the Federal Estate Tax was scheduled to be, and in fact was, eliminated.

However, and although the Federal Estate Tax was scheduled to return with a wealth threshold of just $1,000,000.00, in 2011, it did not. The Internal Revenue Service changed that law and “announced the 2015 estate and gift tax limits […] and the federal estate tax exemption rises to $5.43 million per person, and the annual gift exclusion amount stays at $14,000.” “IRS Announces 2015 Estate And Gift Tax Limits”

The federal estate tax exemption—that’s the amount an individual can leave to heirs without having to pay federal estate tax—will be $5.43 million in 2015, up from $5.34 million for 2014. That’s another $90,000 that can be passed on tax-free. The top federal estate tax rate is 40%.

The Pennsylvania Inheritance Tax

The Pennsylvania Inheritance Tax has no wealth threshold and starts immediately. It is imposed on a percentage based on the relationship of the beneficiary. Spouses and Charities are taxed at a 00.00% tax rate, lineal descendants are taxed at a 04.50% tax rate, brothers and sisters (but not brothers-in-law nor sisters-in-law) are taxed at a 12.00% tax rate, and everyone else is taxed at a 15.00% tax rate.

Pa Estate Law – 1 – Intro

The best gift you can give your loved ones is to have your Pa Estate Planning complete.

Unfortunately, to a great extent, misinformation about critical legal terms such as inheritance tax, estate tax, probate, avoiding probate, simple will, living will, and living trust, tends to lead to misunderstandings of estate planning.

These misunderstandings, in turn, tend to lead to mistakes in estate planning.

These mistakes, again, in turn, tend to lead to unintended results after one’s death.

Pa Estate Law – Intro – 1 – Misunderstandings

In an effort to eliminate such misinformation, misunderstandings, and mistakes, this article will hopefully serve as a primer – in very simple terms – of the basic, core issues and legal terms of Estate Planning and its basic documents.

was recognized by the Pa Supreme Court 140 years ago.
was questioned by the Pa Supreme Court 15 years ago.
was abolished by the Pa Commonwealth Court in 2003?

Pa Common Law Marriage – Caution

As a caution, however, it is important to keep in mind that the Commonwealth Court may not be the final word here. Decisions from this court are always subject to being appealed to – and overruled by – the Pennsylvania Supreme Court.

Pa Common Law Marriage – Note

This paper was presented on October 20, 2003. Since that time, the Pennsylvania Legislature, did in fact, render common law marriage proactively invalid after January 1, 2005, by statute (23 1103), stating that “[n]o common-law marriage contracted after January 1, 2005, shall be valid. Nothing in this part shall be deemed or taken to render any common-law marriage otherwise lawful and contracted on or before January 1, 2005, invalid.” (Nov. 23, 2004, P.L.954, No.144, eff. 60 days)).

This paper – “Pa Abolishes Common Law Marriage” – was also subsequently published on the Martindale-Hubbell website.

In a fascinatingly historical and extensively detailed majority opinion, (both factually and legally), as well as an equally well presented, yet briefer, minority opinion, the Commonwealth Court analyzed and reviewed the scenarios and reasons long ago forgotten that gave rise to a doctrine no longer needed.

The best gift you can give your loved ones is to have your Estate Planning complete.

Unfortunately, to a great extent, misinformation about critical terms such as inheritance tax, estate tax, probate, avoiding probate, simple will, living will, and living trust, tends to lead to misunderstandings of estate planning.

These misunderstandings, in turn, tend to lead to mistakes in estate planning.

These mistakes, again, in turn, tend to lead to unintended results after one’s death.

In an effort to eliminate such misinformation, misunderstandings, and mistakes, this article will hopefully serve as a review – in very
simple terms – of the basic, core issues of estate planning and its basic documents.

Our Aunt passed January 19, 2012 she had a will, no valuables, a mobile home, car and contents of mobile home, savings and checking account. We filed everything with her attorney. How long should this take to settle? Can we call the PA state department and find out the holdup, the Attorney is of no help.